Culanag-Abao, L. D. II. (2018). Financial management handbook on the DOH RO X health facilities enhancement program (Unpublished master's thesis). Public Management Development Program, Development Academy of the Philippines.

Public Management Development Program Middle Managers' Class Batch 14 - Anluwage Thesis (MMC)--Development Academy of the Philippines.

The Philippines is currently operating under a deficit budget where expenditures exceeds the revenues, hence, it is important that aside from attaining the organizational outcomes of any agency, the use of scarce financial resources of the government should be effectively and efficiently managed. As such, the judicious use of government funds is a significant indicator in measuring a good public service which is anchored in the principles of accountability and public trust (Presidential Decree 1445, 1978). However, the huge underspending among the National Line Agencies (NGAs) and Government-Owned and Control Operations (GOCCs) in the FY 2014 as reported by the Department of Budget and Management amounted to Php 303 billion or 13.3% of the total Monthly Disbursement Program of the national government. Almost one-half of the non-expended amount pointed out to the structural weaknesses of the national government agencies and GOCCs, which were contributed by the following: project implementation difficulties, poorly-prepared projects, and procurement difficulties, among other as the common factors affecting the low utilization of government resources (Pascua, 2017). Similarly, the Department of Health Regional Office X has the same problem in FY 2016 as it posted a very low Budget Utilization Rate (BUR) of Php 327,588,271 or 54% of the total capital outlay allocation of the agency under then Health Facilities Enhancement Program (HFEP). Due to this, the agency did not accomplish its desired physical targets for the FY 2016 and failed to achieve the 90% budget utilization rate as part of the eligible criteria for the Performance-Based Bonus. In addition, the problem analysis of the proponent suggested that the unmet targets and underutilization of the agency funds were largely attributed to the poor procurement planning of the HFEP project between the recipient local government units and the HFEP Section (both infrastructure and equipment units); presence of horizontal operational silos between and among the key DOH RO X clusters/units, namely: the Health Facility Development Cluster, the Finance Cluster, the Procurement Unit, and other offices like the Legal Unit and the Licensing Section in the management and implementation of HFEP projects; and the vertical operational silos between the DOH Central Office and the DOH Regional Office in the changes of the HFEP priorities and the delays in the issuance of the guidelines and downloading of additional funds. Hence, the proponents identified the establishment of a Financial Management Handbook on the DOH RO X Health Facilities Enhancement Program as the most feasible, relevant and high impact interventions to the agency problem of low budget utilization of the capital outlay projects. The handbook identified, harmonized and integrated the key processes involved in the financial management of the HFEP projects, such as the financial planning, budget execution or implementation, accounting, financial reporting and internal control. Likewise, this also enhanced the internal processes and operational interfaces of the Health Facilities Enhancement Program (HFEP) in relation to the four major support operations of the agency, namely; the Budget Section, the Accounting Section, the Cashier Section and the Procurement Unit. Through this Re-entry Project, the agency enhanced and synchronized the financial management and operational processes of the Health Facilities Enhancement Program Infrastructure and Equipment Units, highlighting on the proper and adequate planning, efficient and collaborative implementation, and effective and timely delivery of these projects. Moreover, the harmonized and integrated mechanism can impact the achievement of the desired performance targets and mandates of better health outcomes and responsive health system by eliminating, if not, lessening the operational silos of interface processes in improving the management, implementation and fund utilization of all HFEP projects. Furthermore, the intervention hoped to benefit the DOH RO X management in terms of the efficiency and effectiveness of the agency in managing its financial resources; enable government spending relevant and transparent; and improve the overall budget utilization rate of the regional office particularly on its capital outlay funds. This way, the agency is aligned to the national government's financial and budgetary reforms of spending within one's means, spending on the right priorities, and spending on measurable results in order to have an efficient and effective public service delivery.